Unemployment Rises/impact on small business

Unemployment rose to 9.8% and employers added only 39000 jobs...106000 less than expected. Although some analysts are probably surprised I am not. In day to day discussions with business owners, owners are automating as much as they can and do everything possible to prevent hiring. With the cost of insurance and benefits forecasted to increase, it makes more sense for owners to add equipment then hire. A perfect example is a manufacturing plant at capacity, rather than add an overtime shift with additional supervisors and lighting costs it is more cost effective to add duplicate equipment and keep the same staff. The added benefit is a great tax write off under Section 179...plus your equipment won't show up late for work.